The Nomination Committee of the Farmcolony Homeowners Association (FCHA) is working to prepare a slate of candidates interested in serving on its board of directors for the 2019-2020 election year. By serving in a leadership capacity, you can make a positive impact on the future of the farm.
The Board of Directors is a “governing” board by law. Farmcolony’s by-laws specify a seven-member board each serving a two-year term. The Board of Directors meets at least every three months during the year, and on other occasions as needed. The nomination committee is seeking candidates to fill three open positions for the upcoming term. Elections will take place at the annual meeting on Saturday, August 3. Candidates must be members in good standing in the FCHA.
This is an opportunity to contribute your time, energy and ideas to the farm, or nominate another member who you think would be a great leader or contributor. It’s simple and easy. To formally submit a nomination for yourself or another individual, or for more information, email one of the following members of the nomination committee: Phyllis Smith, PSMITHXQL@aol.com; Lynda Davis, lyndasdavis@gmail.com; Ann Bohn, ABBohn.bohn@gmail.com. Nominees will be contacted before the election to confirm that they are willing to serve.
Time is of the essence. Nominations must be received by July 17.
Please participate in this important process by nominating a fellow member (or yourself) for board service. See below for general information about board service and current minutes from recent board meetings to familiarize yourself with current issues before the board.
General Information About Board Service
Being a board member is a volunteer position, and few associations offer training that provides in-depth guidance for well-intentioned but inexperienced board members. The fiduciary duties of homeowners association (HOA) board members mainly arise from state corporate law that recognizes board members serve in a position of trust and requires them to act in the best interest of the association, even though HOA board members are usually volunteers. To help, experts have developed a model code of conduct for community association directors to follow, along with conduct boards should avoid. Here’s that list.
1) Commit your time. If you agree to be a board member, make your service a priority. Expect to attend as many meetings as you can, and attend almost all of them.
2) Know your rules, your budget, and your building. Read, reread, and be well versed in your governing documents and prior minutes. Those documents are your foundation. Read all relevant materials before meetings so you’re prepared to discuss issues and make sound decisions. Be very well versed in your association’s budgetary requirements and restraints. Know such things as what it costs to heat the building and employ each doorman or security guard. Become an expert in your building and grounds. Know your building physically. Know what it takes to maintain the building, the landscaping, the facilities, and the roof.
3) Remember your fiduciary duties. Recognize that board members operate in a fiduciary capacity, which means you’re entrusted with the operation of the association and doing what’s in the association’s best interest, not in your own interest, or even in the interest of the owners. Acting in the association’s best interest also means making decisions on the merits, not because you have an ax to grind or a personal agenda. Don’t solicit or accept gifts, gratuities, or favors, especially with those given with the intent of influencing a decision. Don’t seek preferential treatment from board members, committees, contractors, or suppliers. Don’t receive compensation for serving on the board. Don’t advance a personal cause by using your position on the board to enhance your financial status through the use of particular contractors or suppliers.
4) Know the professionals you’re dealing with. Be on a first-name basis with your manager, CPA, and attorney so that you feel comfortable calling for advice and support.
5) Always comply with your governing documents and relevant laws.
6) Use competitive bidding. The easiest way to avoid the appearance of impropriety in association contracts is to seek competitive bids for all projects over a certain amount, say $500.
7) Work within the association’s framework and refrain from unilateral action. Discuss board business only at board meetings, not at ad hoc meetings. And remember that the board speaks with one voice. If there’s a board decision you disagree with, once it’s made, support it.
8) Always exhibit professional behavior. Treat your constituents with respect and decency. You’ll be surprised at how many problems don’t happen when there’s open dialogue between the board and association members. Don’t harass association members or residents, and refrain from defaming anyone in the community.
9) Maintain confidentiality of association matters when it’s appropriate. For example, if your association is involved in litigation with an owner, you should never discuss board actions and decisions about the litigation outside board meetings—ever.
10) Promptly disclose conflicts of interest, and take immediate action when one arises. Here’s an example: Your board plans to vote on a landscaping contract. Your brother owns a landscaping company. It’s best if your brother doesn’t enter the competition. However, if he does, at a minimum, you should announce that your brother is one of the companies that will bid, and then you should leave the room and not take part in any discussion on the contract. Also insist that the board minutes note that you’ve recused yourself from the discussion and that portion of the meeting.
Farmcolony Special Board Meeting
January 29, 2019
Meeting was called to order at 7:05 pm by President Nitzsche. All board members were in attendance: Billy Arbour, Roberta Culbertson, Angel Cyphert, Emil Davis, Malou Dichtel, Matt Hodges and Erich Nitzsche.
President Nitzsche provided the parameters of this single purpose meeting: Acquisition of a tractor, 2. Financing of the tractor, and 3. Speed in which we need to decide due to cattle needs. This meeting has come about due to the inability of John Deere financing to approve a loan for the tractor over the past 3 months, despite Dichtel’s efforts.
Cyphert presented a situation, background, assessment and recommendation (SBAR) fact sheet which described using the equipment replacement fund and as much of the road replacement fund as needed to purchase a new John Deere 5075E. Because the use of the road fund comes with risk, Bill Bohn, who has managed the last few road resurfacings, gave the board his perspective. The last resurfacing was a double in many areas and repairs were made at a cost of $30,000. It was projected that a resurfacing with today’s lower petroleum costs on a single surfacing would be $25,000.
The Finance Committee, consisting of Dieter Hasse, Bohn, Cyphert and Dichtel met on January 28, 2019, to discuss the need for acquisition of the tractor and how to pay for it. They concluded that using the equipment fund and partially the road fund is the recommendation.
Brief discussion ensued about replacement of the road fund, including from cattle sales in the spring of 13 calves and 3 cows for around $10,000. Hodges warned that we can’t simply apply those funds without also considering the effect on the 2019 budget which may require those funds to operate. Nitzsche suggested activation of the forestry planning to timber the common/conservation areas above the Farmview lots. When this was done many years ago, the $45,000 generated was used to purchase a tractor. Culbertson and Davis warned against assuming any number for timber harvesting given the market for lumber is significantly different today than decades previously.
Dichtel is also pursuing a commercial line of credit option with Pioneer Bank, likely a lien against the farmhouse in a size large enough to repave roads should that become necessary faster than the road fund could be replenished. Culbertson suggested that repaying the LOC at an amount of $500/month or more should be considered in the 2019 budget in order to replenish the road fund.
Davis inquired about a special assessment of $1000/lot and/or increasing HOA dues as well. This was dismissed as impossible.
Cyphert suggested with a new tractor’s capacity, we could grow the herd and hay more, both potentially generating more revenue.
Arbour suggested looking at a used tractor to expend fewer funds. That idea was tabled on two fronts: 1. Board has approved the new tractor purchase previously – this meeting is to determine how to pay for it, and 2. Haase reiterated that a new tractor has extended warranties while a used tractor comes with unknown mechanical issues and thus unknown future repair costs.
Culbertson expressed concern about when and how the road fund will be paid back, when we have no clear knowledge of how cattle sales will go, nor any way to commit them at this time.
In summary, prior to motion, the board does not have a concrete plan in place to replenish the road maintenance funds. There is only a promise to replenish with no specified timeframe.
Motion: Dichtel moved to allocate the existing equipment fund and as much of the road fund as needed to buy the designated John Deere tractor outright. Board to work with Finance Committee to repay the dedicated road fund to ensure compliance with bylaws in a timely manner. Davis seconded. On voice vote, 6 yeas, Culbertson nay. Motion passed.
At 7:50, President Nitzsche adjourned meeting.
Respectfully submitted,
Matt Hodges, Secretary
Farmcolony Board Meeting
March 17, 2019
President Nitzsche called the board to order at 4:10 pm.
All board members were in attendance: Billy Arbour, Roberta Culbertson, Angel Cyphert, Emil Davis, Malou Dichtel, Matt Hodges and Erich Nitzsche.
Minutes from the previous two meetings – December 23, 2018 and special meeting on January 29, 2019 were presented and approved.
Treasurer’s Report: (See attached).
Committee Reports:
Garden: Erich reports that garden is being prepped for Spring
Chicken: Roberta reports that the chicken area is “amazing”. We received about $5000 value in chicken equipment and volunteer labor for the reconstruction of the chicken area. We are vigilant of predators and how to protect them with physical barriers. 40 is the target laying population. Thank you’s to farm members who helped in this process.
Social: Malou reports that the ladies on the farm had a nice outing to Michie Tavern. Muriel is hosting April 14th Easter Brunch from approximately noon to 3 pm.
Cattle: Angel reports 30 brood cows, soon to be 25 after culling. 10 fall calves are projected to bring $8,000-$10,000 on 3/25. Spring calving is going so-so. 17 were anticipated, 2 have died. A bull had medical issues and a dead calf was delivered today. 6 born, healthy. 6-9 more predicted. Honzie is still producing probably for another 2 years. Emotionally and physically demanding winter.
Sustainable Beef Production. Emil and Lynda Davis have been a great help. Angel’s availability to be available is greatly reduced due to work. Lynda has a baby 3X week, Emil works in Richmond, Dieter backed off due to health, family obligations. A good idea would be to apply for a USDA grant, in order to financially help to hire a hand. It was suggested that labor is needed 20-25 hours/week, along with fence clearing, as well as a heifer increase. Erich recognized the small pool of dedicated crew. Feeding cattle is a 7 day/week job. There have been calving challenges. There are areas where the fencing is not hot, but Honzie is there. Erich suggested an inclusive plan-grant, options for our members and stressed that we can’t put our farm into a greater hole, financially.
Motion to apply for USDA VA PG (Value Added, Program Grant). Roberta suggested cow committee provide workable, usable ways to get members involved, and further, long-term how to handle cows long term. Erich seconded, vote unanimous. Also, Lynda to put out a notice to everyone on the farm to see who can help.
Aging in Place: Barbara-committee to discuss AIP. Barbara briefly led a discussion regarding the concept of Aging in Place and how it could work on the farm. There are challenges within our bylaws and FCOPs, as well as Greene County regulations, such as too many unrelated people living in one structure. Barbara suggested the idea of a house to be built as a “4-pod” – one structure, with 4 independent living areas, but with common areas including kitchen. She was directed to reach out to the Charlottesville Albemarle Chamber of Commerce who has a dedicated AIP committee.
Marketing Plan – Nancy Sopher discussed the concept of Agrihoods. There are about 200 AG communities in the US. There is a trend towards buying local food-beef and produce. Some of these communities have farm managers, some have higher dues. Her direction is to work with other committees to look for ideas to market our existing product as well as look for opportunities that our community could offer.
Old Business: Horse boarding was briefly discussed to revisit cost of boarding horses. Malou indicated that boarding market price is $350 just for pasture grazing and owners provide own feed. Change to FCOPs would be required for such marketing.
Meeting was adjourned at 6:08 pm.
Respectfully submitted,
Matt Hodges, Secretary